American Superconductor (NASDAQ: AMSC) saw its shares plummet 18.19% in pre-market trading on Thursday, following the release of its second-quarter financial results for fiscal year 2025. The sharp decline came despite the company beating earnings estimates, as investors focused on a significant revenue miss and disappointing forward guidance.

The company reported quarterly sales of $65.862 million, falling short of the analyst consensus estimate of $67.850 million by 2.93%. Although this represents a 20.91% increase in revenue compared to the same period last year, the failure to meet market expectations has clearly spooked investors. American Superconductor did manage to post adjusted earnings per share of $0.20, surpassing the analyst consensus estimate of $0.15 by 31.58%. However, this positive surprise was not enough to offset concerns about top-line growth.

Adding to investor worries, American Superconductor provided guidance for the third quarter that failed to impress Wall Street. The company expects Q3 revenue between $65 million and $70 million, with GAAP net income projected to exceed $2 million. This outlook suggests that the company may continue to face challenges in meeting revenue expectations in the near term. The market's negative reaction indicates that investors are particularly concerned about American Superconductor's ability to maintain strong top-line growth in an increasingly competitive electrical components and equipment sector.